10 Best Cryptocurrencies Of September 2022
When you first start becoming involved in the world of cryptocurrencies, it can be very confusing because there are dozens of different cryptocurrencies to choose from, ranging from Bitcoin and Ethereum to Dogecoin and Tether. These are the top 10 cryptocurrencies on the market right now according to their market capitalization, which is the total worth of all the coins that are currently in circulation. Hopefully, this will help you gain your bearings.
What Exactly Are These Cryptocurrency Things?
A digital asset that may be circulated without the need for the centralized authority of a bank or government is referred to as a cryptocurrency. More than 20,000 cryptocurrency projects have been launched to date, and these projects collectively constitute the whole $982 billion cryptocurrency market.
1. BTC (Bitcoin) (BTC)
• Market cap: $383 billion
Bitcoin (BTC) is the first cryptocurrency ever created; its inventor, Satoshi Nakamoto, released it in 2009. BTC operates on a blockchain or a distributed ledger that logs transactions and is spread out across a network of thousands of computers, just like the majority of other cryptocurrencies. Bitcoin has maintained secure and safe from fraudsters thanks to a mechanism known as proof of work, which requires changes to the distributed ledgers to be confirmed by finding the solution to a cryptographic problem.
The price of bitcoin has surged as a result of its increased visibility in the public eye. In May of 2016, the cost of purchasing one Bitcoin was approximately $500. As of the 1st of September 2022, the price of a single Bitcoin was around $19,989. That amounts to an increase of around 3,900%.
2. Ethereum (ETH)
• Market cap: $192 billion
Ethereum, which is both a cryptocurrency and a blockchain platform, is a favorite among program developers due to the potential applications that it could have. These applications include so-called smart contracts, which are agreements that automatically carry out their terms when certain conditions are satisfied (NFTs).
Ethereum, too, has seen a remarkable expansion in recent years. The price of the good increased by around 14,150% between April 2016 and the beginning of September 2022, rising from approximately $11 to approximately $1,568.
3. Bind securely (USDT)
• Market cap: $67 billion
Tether (USDT) is a stablecoin, which means that it is backed by fiat currencies such as the U.S. dollar and the Euro and that it theoretically maintains a value equal to one of those denominations. This sets it apart from some other kinds of cryptocurrency. Because of this, the value of Tether is thought to be more stable than the value of other cryptocurrencies, and investors who are concerned about the high degree of volatility that is associated with other coins choose to select Tether.
4. A coin worth one U.S. dollar (USDC)
• Market cap: $52 billion
Similar to Tether, USD Coin (USDC) is a stablecoin, which means that it is supported by U.S. dollars and attempts to maintain a ratio of 1 USD to 1 USDC at all times. You are able to use USD Coin to carry out transactions anywhere in the world. USD Coin is powered by Ethereum.
5. The Binance Coin (BNB)
• Market cap: $44 billion
Binance Coin (BNB) is a type of cryptocurrency that may be used to trade on Binance, one of the largest cryptocurrency exchanges in the world, as well as pay fees associated with trading. Binance Coin has gone beyond its initial purpose of facilitating trades on the Binance exchange platform since it was first introduced in 2017. Trading, the processing of payments, and even making trip reservations are now all possible uses for the platform. Additionally, it may be bought, sold, or otherwise transacted for other cryptocurrencies, such as Ethereum or Bitcoin, via trading or exchange.
In 2017, BNB traded at a price of only $0.10. Its price has increased to roughly $276 by the beginning of September 2022, representing a gain of approximately 275,900%.
6. Binance in US Dollars (BUSD)
• Market cap: $19 billion
Paxos and Binance came up with the idea to establish a cryptocurrency that was backed by the United States dollar and created a stablecoin called Binance USD (BUSD). Paxos stores an amount of U.S. dollars that is equivalent to the complete supply of BUSD so that its value can remain stable. As is the case with other stablecoins, BUSD enables traders and cryptocurrency users to engage in transactions involving other crypto assets while simultaneously reducing the danger of price fluctuations.
7. XRP (XRP)
• Market cap: $16 billion
XRP is a digital currency that can be used on the Ripple network to facilitate exchanges of various currency types. These currency types include fiat currencies as well as other major cryptocurrencies. XRP was created by some of the same founders as Ripple, a digital technology and payment processing company.
The price of XRP was $0.006 at the beginning of the year 2017. The price had increased to $0.32 as of the first of September 2022, which is equivalent to a rise of 5,233%.
8. Cardano (ADA)
• Market cap: $15 billion
Cardano (ADA), which entered the cryptocurrency market at a later stage than other prominent cryptocurrencies, is famous for its early adoption of proof-of-stake validation. By removing the competitive and problem-solving aspects of transaction verification in platforms like Bitcoin, this technology shortens the amount of time it takes to complete a transaction while also reducing the amount of energy used and the impact it has on the environment. Cardano also functions similarly to Ethereum in that it enables smart contracts and decentralised applications, both of which are powered by ADA, the network’s native token.
In comparison to the growth of other major cryptocurrencies, Cardano’s ADA token has seen very moderate progress. In 2017, the price of ADA was $0.002 USD. As of the first of September in 2022, the cost was $0.44. This represents a rise that is 2,400 times greater.
9. Solana (SOL)
• Market cap: $10 billion
Solana uses a one-of-a-kind hybrid proof-of-stake and proof-of-history mechanism to process transactions in a speedy and safe manner. This mechanism was developed to help enable usage of decentralised finance (DeFi), decentralised applications (DApps), and smart contracts. The platform is driven by SOL, which is Solana’s native coin.
The price of SOL began at $0.77 when it first became available in the year 2020. At the beginning of September 2022, its price had increased to over $31.25, representing a gain of almost 3,958%.
10. Dogecoin (DOGE)
• Market cap: $8 billion
Dogecoin is famous for having been created as a joke in 2013, but it soon blossomed into a prominent cryptocurrency thanks to a committed community and clever memes. Dogecoin, in contrast to many other cryptocurrencies, does not have a cap on the total number of coins that can be created. Because of this, the value of the currency is prone to decline as the total amount of coins in circulation increases.
In 2017, the price of a dogecoin was $0.0002 USD. Its price had increased 30,400% by the 1st of September, 2022, reaching $0.061.
FAQ
What exactly are these digital currencies?
Cryptocurrency is a sort of currency that only exists in digital form and cannot be physically held. You can make investments using cryptocurrency, or you can use it to pay for things you buy online without going through an intermediary like a bank. Either way, you can use cryptocurrency.
How is the buying and selling of cryptocurrencies different from the buying and selling of stocks?
Although it is possible to invest in cryptocurrencies, doing so is very different from traditional forms of investment like as buying stocks. When you purchase stock in a firm, you are actually purchasing a piece of ownership in that company. Because of this, purchasing stock grants you certain rights, such as the ability to vote on important business decisions. If that company declares bankruptcy, you may be eligible for some form of compensation after its debtors have been paid from the proceeds of the sale of its assets.
The purchase of cryptocurrencies does not confer ownership over anything other than the token itself; rather, it is analogous to swapping one form of currency for another. In the event that the value of the cryptocurrency drops, you won’t receive anything after the fact.
There are several other important distinctions to keep in mind, including the following:
• Trading hours: Shares of stock can only be bought and sold during the hours that the stock exchange is open, which are typically from 9:30 a.m. to 4:30 p.m. Eastern Time (ET), Monday through Friday. Because cryptocurrency markets never close, trading is possible at any time of day or night, seven days a week.
• Regulation: Stocks are regulated financial products, which means that a governing body verifies the credentials of stockholders and that stockholders’ financial information is open to public scrutiny. Because cryptocurrencies, on the other hand, are not regulated as investment vehicles, it is possible that you are unaware of the inner workings of your cryptocurrency or the developers who are working on it.
• Volatility: Investing in stocks or cryptocurrencies exposes you to risk, as the money you put in could go down in value. On the other hand, stocks are directly associated with companies and, in general, their value rises and falls in response to the performance of those companies. The prices of cryptocurrencies are more subject to speculation because no one can accurately predict what their value will be. That makes them much more volatile and susceptible to being affected by something as inconsequential as a tweet from a celebrity.
Should it be expected that cryptocurrency will be subject to taxation?
Paying attention to the regulations governing taxes on cryptocurrencies is essential if you buy and sell coins. Instead of being handled like cash, cryptocurrencies are classified as capital assets, similar to stocks. This means that if you sell cryptocurrency and make a profit, you will be responsible for paying taxes on the capital gain. Even if you make a purchase using cryptocurrency as payment, this will still be the case. If you sell it for more than you paid for it, you will be responsible for paying taxes on the difference in value.
Are there any exchange-traded funds (ETFs) that deal in cryptocurrency?
It is understandable that you might want to take a diversified approach to investing in cryptocurrency in order to reduce the likelihood of incurring a financial loss. There are thousands of different cryptocurrencies currently in circulation, and the majority of them are characterised by high levels of volatility.
Cryptocurrency exchange-traded funds (ETFs) have been proposed by a number of companies, including Fidelity; however, regulatory obstacles have slowed the launch of any consumer products. As of June 2021, the market does not offer any exchange-traded funds (ETFs) that are accessible to ordinary investors.
How can one acquire cryptocurrency?
Coinbase, Kraken, and Gemini are some examples of crypto exchanges that you can use to purchase cryptocurrency. Additionally, individuals are able to buy cryptocurrencies through the use of brokerages such as WeBull and Robinhood, amongst others.
Why are there dozens upon dozens of different cryptocurrencies?
There are already over 19,000 cryptocurrency projects in existence, and there are relatively low obstacles to participation in this burgeoning market for cryptocurrencies. In particular, the previous year saw a boom in the cryptocurrency sector, which resulted in the addition of thousands of new crypto ventures.
Some cryptocurrencies are employed as currency, while others are put to use in the construction of infrastructure. For example, in the case of Ethereum or Solana, developers are constructing additional cryptocurrencies on top of these platform currencies. This opens up even more opportunities (and cryptos).
What exactly are “altcoins”?
Bitcoin is typically the first cryptocurrency that comes to mind whenever the term cryptocurrency is spoken. This is due to the fact that Bitcoin accounts for more than 45 percent of the entire cryptocurrency market. Therefore, whenever we discuss cryptocurrencies other than Bitcoin, we will refer to all of those cryptocurrencies as altcoins.
For example, Ethereum is often considered to be the most widely used alternative coin.
What factors contribute to bitcoin’s value?
The fact that there are so few Bitcoins in circulation contributes to its high value. There will never be more than 21 million Bitcoins available for purchase. There are currently 19 million different coins available for purchase.
Cryptocurrency miners are rewarded with a certain amount of Bitcoin so that a supply can be created. (The actual amount of Bitcoin that is issued to a miner after successfully mining a single block is 6.25 Bitcoin.) The rewards that are given out for mining Bitcoin are halved about every four years in order to maintain control over the process.
Why is it vital to use cryptocurrencies?
The significance of cryptocurrencies is continuously growing, and there is no sign that this trend will abate any time soon. The fundamental idea behind cryptocurrencies at first was to address inefficiencies inherent in conventional currencies; but, as a direct result of the development of blockchain technology, a plethora of new utility-based cryptocurrencies have emerged in recent years.
